A Fed policymaker’s remarks Monday increased speculation about whether the Fed will start to taper its bond-buying program this month.
James Bullard, president of the Federal Reserve Bank of St. Louis, opened up the possibility of a small reduction in the Fed’s bond-buying program, another sign the central bank may soon shrink its 15-month-old monetary stimulus.
Speaking at the CFA Society of St. Louis on Monday, Bullard said an improving job market could let the Fed slow down its program of buying $85 billion in long-term bonds every month. Employers have added more jobs than economists expected since the program was announced in September 2012, and the unemployment rate, now 7%, has fallen twice as fast as was then forecast, he said.
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